Israel’s government has advanced extensive settlement construction, outpost legalization, and administrative measures such as land registration and enforcement authority in Area C, producing de facto control over large portions of the West Bank without formal annexation. Recent cabinet decisions approving dozens of new settlements and related infrastructure reflect coalition priorities, yet formal sovereignty legislation has repeatedly stalled amid U.S. opposition, including explicit statements from the Trump administration against such steps, alongside concerns over diplomatic fallout with Jordan, the EU, and Arab partners. Traders assign 96% probability to no annexation before 2027 because these constraints, combined with the preference for incremental changes ahead of potential 2026 elections, outweigh far-right calls for immediate legal extension of Israeli law. A sudden U.S. policy reversal, major security escalation, or post-election coalition shift could still alter the timeline.